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Accounts Payable and Accrued Expenses | 6 Months Ended
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Jun. 30, 2024
Payables and Accruals [Abstract] |
Accounts Payable and Accrued Expenses | Note 8. Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consist of the following:
Schedule of accounts payable and accrued expenses |  |  |  |  |  |  |  |
|  | June 30, |  |  | December 31, |
|  | 2024 |  |  | 2023 |
Accounts payable |  | $ | 6,702,091 |  |  | $ | 5,226,071 |
Office access deposits |  |  | - |  |  |  | - |
Unearned revenue |  |  | 9,107,297 |  |  |  | 9,107,297 |
Accrued interest (various notes and loans payable) |  |  | 209,962 |  |  |  | 178,999 |
Accrued interest (working interest royalty programs) |  |  | 1,546,569 |  |  |  | 1,396,528 |
Accrued tax penalties and interest |  |  | 741,094 |  |  |  | 669,747 |
Accounts payable and accrued expenses |  | $ | 18,307,013 |  |  | $ | 16,578,642 |
Schedule of accounts payable and accrued expenses related parties |  |  |  |  |  |  |  |
|  | June 30, |  |  | December 31, |
|  | 2024 |  |  | 2023 |
Accounts payable- related parties |  | $ | 3,237,329 |  |  | $ | 1,933,817 |
Accrued interest (notes payable)- related parties |  |  | 4,723 |  |  |  | - |
Accounts payable and accrued expenses- related parties |  | $ | 3,242,052 |  |  | $ | 1,933,817 |
Accrued compensation |  | $ | 834,448 |  |  | $ | 1,968,063 |
For the six months ended June 30, 2024, our accounts payable and accrued expenses include recently received unverified billings from a service provider in the amount of $371,075, of which the Company is in the process of reviewing and may dispute in the near future. As of June 30, 2024 and December 31, 2023, our accounts payable are primarily made up of trade payables for the purchase of crude oil. Trade accounts payables in the amount of $2,810,785 and $1,933,817 is with a vendor who our CEO is a beneficiary of. As of June 30, 2024 and December 31, 2023, accounts payable related to services rendered of $426,544 and $178,325, which are not trade payables, are with a vendor who our CEO is a beneficiary of. As of June 30, 2024, accrued compensation to current employees includes $128,697 in accrued vacation pay due to our Chief Executive Officer, which may be payable in cash or stock if unused, and $207,124 due to our Chief Financial Officer, with $90,002 in accrued sick and vacation pay is payable in cash if unused. Accrued compensation includes prorated year end accrued cash bonuses that are considered probable. On June 13, 2024, we entered into a new executive employment agreement with our Chief Financial Officer, and in connection with the executive employment agreement we also entered into a settlement agreement with respect to accrued compensation owed by the Company to our Chief Financial Officer (the “Settlement Agreement”). Pursuant to the new employment agreement, our Chief Financial Officer will receive: (i) $450,000 annually (the “Base Salary”); (ii) an annual cash incentive bonus of a minimum of 50% of the Base Salary (a portion of which may be payable in the form of restricted common stock of the Company) and a maximum of 120% of the Base Salary; and (iii) an annual equity incentive bonus of a minimum of 25% of the Base Salary and a maximum of 120% of the Base Salary in shares of restricted stock. He will also be eligible for a cash transaction bonus (the “Transaction Bonus”) for Qualified Transactions, as defined in the new employment agreement, of 0.5% of the enterprise value of the assets, equity or business sold or acquired or the listing value of the equity or debt being listed on a national exchange. For each of the closing of the Merger Agreement and Endeavor MIPA (as defined herein), he will receive a bonus of $200,000, with $100,000 for each such bonus to be paid in cash and the remaining $100,000 for each such bonus to be paid in shares of the Company’s common stock, valued on the date of close of the Merger Agreement and the Endeavor MIPA, respectively. The foregoing bonuses are in lieu of a Transaction Bonus for either the Merger Agreement or the Endeavor MIPA. The new employment agreement is for an initial term of two years and will auto-renew for subsequent one-year terms if not terminated by either party at the end of a term, which requires 90 days prior notice. The new employment agreement may also be terminated under standard cause and without cause termination and resignation provisions. At the time of the termination of the previous executive employment agreement, the Company owed its CFO $1,167,750 in accrued salary and bonuses, plus interest (together, the “Accrued Compensation”), for serving as the Company’s Chief Financial. Pursuant to the Settlement Agreement, the Company and our CFO agreed the Accrued Compensation would be paid to our CFO under the terms of a straight promissory note in the principal amount of the Accrued Compensation (the “Note”) (see Note 9). On June 26, 2024, we entered into an executive employment agreement with Patrick M. Knapp to join the Company as its Executive Vice President, General Counsel, & Secretary (the “Knapp Agreement”). The Knapp Agreement provides for an annual base salary of $350,000. In addition, the Knapp Agreement provides for annual incentive cash and equity compensation of up to $840,000 based on certain performance goals as further set forth therein. As an inducement to enter into the Knapp Agreement, Mr. Knapp received a one-time signing grant of Company common stock equivalent in value to $250,000, which are priced per share based on the volume-weighted average price for the preceding five (5) trading days prior to the day of such grant (calculated to be 140,190 shares based on the effective date of the Knapp Agreement), subject to an eighteen (18)-month lockup period and a conditional clawback obligation concurrent therewith, which shares were issued to him on July 2, 2024.

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